Luxury home prices in the Denver Metro Area surged last month compared to March and year-ago levels, although sales declined during the same period, according to Coldwell Banker Residential Brokerage, Colorado’s leading provider of luxury real estate services.

The median sale price of million-dollar homes climbed to $1,436,355 in April, up 19.7 percent from a year ago when the median stood at $1.2 million. Last month’s level was also up 7 percent from March, when the median was $1,342,500.

Sales declined in April to 26 units, down from 34 in March and 58 in April 2010. But there were more high-end sales last month as seven homes sold for more than $2 million compared to just three in March. Sellers also received more than 91 percent of their asking price on average, up from 90 percent in March and 89.8 percent last year.

The figures were derived from Multiple Listing Service data of all homes sold for more than $1 million last month in the Denver Metro Area.

“The overall housing market, including the high-end of the market, has been gradually improving,” said Chris Mygatt, president of Coldwell Banker Residential Brokerage in Colorado. “It’s encouraging to see median prices increasing, which is an indication that the market is gaining strength. But as the sales figures show, the recovery will continue to come in fits and starts.”

The most expensive sale in the Denver Metro Area last month was a four-bedroom, six-bath 6,748-square-foot home in Boulder that sold for $3.2 million;

Boulder boasted the most million-dollar sales with eight, followed by Denver with four;

Sellers on average received 91.2 percent of their asking price, up from 89.8 percent a year ago and 90 percent the previous month;

It took an average of 224 days to sell a million-dollar home in the area, up from 141 days a year ago and 181 days the previous month.

The Denver Metro Area Luxury Home Report is produced by Coldwell Banker Residential Brokerage, a specialist in high-end real estate sales. Through its internationally renowned Coldwell Banker Previews® program, the company is recognized around the world for its expertise in the luxury housing market.

This 6,748-square-foot home in Boulder County sold for $3.2 million in April.

The Denver-area market for homes costing at least $1 million is relatively steady, shows a report released today.

There were a total of 57 sales – 51 single-family homes and six condos – in April, compared with 58 in April 2010, according to the report released by independent broker Gary Bauer. Single-family home sales were down by four from April 2010, when 55 traded hands, while condo sales doubled.

By the numbers In the first four months of the year, 156 homes sold – 143 single-family homes and 13 condos, compared with a total of 147 during the same period in 2010.

The total dollar volume for luxury homes in the first four months of the year was $235.9 million, compared with $232.9 million through April 2010.

The number of single-family home sales in April rose by 54.5 percent on a month-to-month basis, but that was for seasonal reasons, Bauer said. In March, 33 luxury homes sold. In April 2010, luxury single-family home sales rose by almost 90 percent from March 2010, when only 29 homes in that price range closed.

Luxury market proxy for entire market “What is happening in the luxury market is an example of what is happening in the overall market,” Bauer said. “We’re going to see a little up and little down for the next month or two. When we hit the prime season, we’ll see some upward movement.”

While the upper-end activity may not be “exciting,” Bauer said it still remains positive.

“It is beneficial to have $236 million in transactions,” Bauer said. “That is good for the economy.”

Edie Marks, a broker with the Kentwood Co., said Bauer’s data reflects what she is seeing.

“There’s nothing huge; nothing saying that there is a huge upward trend, but just kind of a steady market,” she said.

Low-ball offers abound What she is seeing, however, is a lot of low-ball offers.

“I’m seeing a lot of buyers out there who want to steal properties,” Marks said. “I’m seeing some really bad offers. They definitely want to steal the properties before they go up in value. But in most of the cases, the sellers are holding the line, which is appropriate.” In one case, she said she has received five offers from one potential buyer. The seller first listed the house at $1.35 million and has dropped the asking price to $1.150 million. The seller isn’t willing to accept a super-low offer, feeling he has come down enough in price.

“The seller is not going into the $900,000s,” or even $1 million, Marks said. The persistent prospective buyer, she said, “moves $15,000 and expects us to jump.”

She said just about every one of her 7-figure listings has received offers that have been rejected by the sellers.

“That’s what I am hearing from other brokers, too,” Marks said. “If people were accepting these low-ball offers, the (sales) numbers would be double.”

Bauer’s analysis of Metrolist data found that for single-family home sales:

13 were in Denver

Bauer’s analysis of Metrolist data found that for single-family home sales:

13 were in Denver

11 in Arapahoe and Douglas counties

9 in Boulder County

6 in Jefferson County

1 in Adams County

For condos, three were Denver, two in Boulder county and one in Arapahoe County.

This Cherry Hills home, listed at $2.85 million, sold for $2.55 million.

Single-family home prices ranged from $1 million to $3.2 million. The 51 home sales in April represented $76.6 million in sales volume, compared with $83.5 million in April 2010.

The median list price last month was $1.425 million and the median sold price was $1.3 million. In April 2010, the median list was $1.375 million, an the median sales price was $1.2 million, Bauer’s report shows.

There are currently 1,157 single-family homes priced at $1 million or more on the market, down 16.6 percent from the 1,212 in April 2010, but up 14.4 percent from the 1,011 on the market in March.

There are 106 condos in that price range on the market, down 23.4 percent from the 137 a year ago, and up 0.95 percent from the 105 in March.

Foreclosures in Colorado have fallen to their lowest levels since the third quarter of 2008 and have fallen nearly 35 percent below 2009’s third-quarter total when filings peaked at more than 12,000, the state of Colorado Division of Housing said today.

A doorknob of a home for sale is secured with a realtor's lock in a Henderson, Colorado neighborhood in this file photo. (Getty Images North America | Chris Hondros)

New foreclosure filings fell to 8,115 in Colorado during 2011’s first quarter, falling 27 percent from 2010’s first-quarter total of 11,136.

According to the report released Thursday by the division, foreclosure sales at auction, the event that completes the foreclosure process, also dropped during the first quarter, falling 16 percent from 6,686 to 5,606, year-over-year, for the first quarter.

“Mortgage services and lenders continue to process foreclosures at an unusually slow rate, and although we expected foreclosure activity to drop in the first quarter, it fell more than expected,” said Ryan McMaken, Division of Housing spokesman. “That gives us hope for the future, but right now, foreclosure sales at auction aren’t going away.”

McMaken said that while several Colorado regions saw improvement during the first quarter, some parts of the state continued to see foreclosure growth.

All 12 of the state’s metropolitan counties reported drops in foreclosure filings during the first quarter of 2011.

But the story was different for some Western Slope and mountain counties where a rise in foreclosures was experienced.

From the first quarter of 2010 to the same period this year, filings in Garfield County rose 26 percent. They also rose 37 percent in Alamosa County and 29 percent in Delta County.

“The Western Slope and the mountains in Colorado are still growth areas for foreclosures,” McMaken said. “Mesa County finally saw some relief this past quarter with a drop in foreclosure filings, but places like Eagle, Garfield and Montrose (counties), we’re seeing both increasing numbers, and some of the higher foreclosure rates overall.”

Along the Front Range, Adams County filings fell 31 percent and Denver County fell 41 percent.

McMaken said most of the state’s 64 counties reported year-over-year declines in foreclosure filings.

Heading into the heart of this year’s spring season, a national perspective of the housing market is helpful in pointing out a few reasons for optimism in the months ahead.

Bruce Zipf, president and CEO of NRT, Coldwell Banker’s national parent company, said this week that despite trailing last year’s pace, overall business results have managed to exceed expectations, thanks in large part to a surprisingly resilient high-end market.

NRT’s agents across the country closed 32 homes over $10 million in March, up from 10 last year and just six in March 2009. The total number of homes sold over $2 million is up 12%. There was particular strength in the luxury segment of the market in the Northeast, Florida and in California.

Normally, the strength of the housing market is judged by looking at current sales volume against the same time last year to gain a sense of how things are improving. But data cannot be properly compared from this March and April due to the artificial stimulus effects of last year’s Home Buyer Tax Credit. In May, these effects should lessen and give the first true glimpse of the market’s strength.

Nonetheless, there will undoubtedly be continued improvement in the market as the heart of the spring buying season approaches, especially right here in Colorado. Many local offices report seeing growing momentum from buyers looking to take advantage of mortgage rates while they’re still low, as well as prices that remain affordable.

In a number of local markets, there continue to be more qualified buyers than listings. This situation is resulting in multiple offers for many attractive homes, often bidding up the sale price over the asking price. Buyers are coming in with a lot of cash or all cash to win out the competition. How things have changed since the depths of the recession!

This is not to say that every market around Colorado is experiencing the same strong buyer demand. Certainly a number of communities and even neighborhoods within those communities have more balanced markets, and some homes continue to sit while others sell briskly. But in general, well-presented, well-priced homes are selling much better today than they did a couple of years ago.

Another reason for optimism is that mortgage rates are likely to remain affordable for some time to come. A lot of market-watchers were concerned that the Fed could ratchet up interest rates soon in response to inflation fears and the end of the government’s bond-buying program. But Fed Chairman Ben Bernanke largely put those fears to rest in his first-ever press conference last week.

Although Bernanke signaled the end of its $600 billion bond-buying program, as expected, he made it very clear that he isn’t inclined to raise interest rates for a long time unless the inflation outlook worsens. More than anyone, the Fed chairman is very aware that the economy continues to face headwinds in the form of high unemployment levels and a tepid housing market in many parts of the country. While things are certainly getting better, Bernanke isn’t likely to do anything to douse the nascent recovery.

So looking to May and the summer season before long, there are many reasons to be encouraged that the housing recovery will continue to gain traction – especially here in Colorado.

Below is a market-by-market report from local offices:

Boulder—Listings are down over the two week period & there are comments from agents that there is not enough selection in the upper end of the price range. The number of contracts remained steady over the two week period while the number of showings increased by 15% over the past two weeks. All three indicators add up to indicate continued cyclical growth moving into the busiest months of the year.

Colorado Springs—Showings were up 25% even with the holiday as a lot of showings were set for Saturday. Listing inventory has remained the same because many buyers do not want to purchase a short sale (mortgage holder must approve the contract & that can take from 5 to 10 weeks). Because of that sales were down 20% from past weeks. This coming week is jam-packed with economic reports that can have a big impact on the markets & home loan rates which still remain at an all time low.

Southeast Metro—Well, here at the end of April real estate activity is in full swing. There has been consistent increases in showings on all office listings, even those in the higher price points. Buyers are finding that if they find a property that meets their criteria, they had better get an offer in or they have a very good chance of losing that home to another buyer as listing inventory has dropped somewhat. In the upper end of the market, there have been consumers making buying decisions. Days on the market has dropped slightly. Sellers are encouraged in all price points to get their homes ready by doing the cosmetic fixups that will make their homes stand out from the others on the market – fresh mulch and flowers for great curb appeal as well as updates of paint colors, decluttering and staging the interior of their homes. Interest rates are still very appealing so now is the time for both sellers and buyers. Looking forward to a much improved real estate season this spring and summer.

Denver Central—The downtown, Denver Central, office has been pretty steady for the last couple of months. However, these last two weeks under contracts have almost doubled. A lot of buyers are getting off the fence right now. Listings are beginning to drop off some. Agents have a good positive attitude about the market.

Larimer County—Activity is still brisk with office showing data increasing week over week. There are numerous reports of multiple offers on well-priced homes & while the sales pace has slowed somewhat, it appears to be more Easter/Passover/Graduation related than anything on the economic front. The business news for Northern Colorado remains on the positive side as local companies have shown positive quarterly earnings & slow but steady signs of growth. Housing inventory levels remain at 10 year lows which will certainly help minimize the downward pressure on prices – but serious Sellers must be aggressive & take a hard look at the market to ensure that when their home goes on the market, it is priced to get the attention of the Buyers that are ready to buy right now. Interest rates are relatively steady but creeping upward which can begin to limit a Buyer’s purchasing power. The best bet is to contact a Coldwell Banker Home Loan mortgage advisor & get locked in on a great rate right now!

Longmont—Activity is happening in the Longmont market! Showings are up to usual Spring levels. The agents holding Open Houses are seeing good traffic. Educated buyers realize this is the time to purchase. Short sales and foreclosures are still a part of this market and they are impacting some neighborhoods in a large way. Financing for the marginal buyer continues to be a challenge, however the well qualified purchaser has some great financing options. First time buyers are finding great values here in Longmont.

Parker—The last couple of weeks have been very active again. Listing inventory is decreasing and agents are writing more contracts every week. Forecasts tell us that the interest rates are expected to go up by a full percent by the end of the year which makes now the time to buy and to invest! Also, if the inventory continues to decrease, prices will be more stable and begin to go back up!

Devonshire—Market activity seems to be improving based on the number of showings and contracts written.

Southwest Metro—There is great activity in the office. Buyers & sellers are ready to make their move. Interest rates at this time are still very good and buyers are realizing that they need to get moving before rates begin to creep up. The majority of sellers are pricing their homes to sell in this market. Showings have been steady and open houses have been great. Three clients walked in looking to buy & floor agents have been successful in converting these to actual deals. Looking forward to a good Spring season.

Denver West—Properties that have been on the market for sale for a year are now receiving offers. Although the price has been adjusted down, it is clear that more buyers are in the market place. Even though there is substantial inventory, oftentimes there is not “good” inventory. Many homes in the 30+ age bracket desperately need new kitchens and bathrooms in order to help them to sell. Typically, buyers want to move into a home that is “move in ready” or they want a real bargain if they need to do the updating.

Loveland—The Loveland news that ACE (the NASA spinoff) is still huge news for Northern Colorado, Loveland in particular. There is more new home builder activity. The price of these homes is mostly at the entry level for housing. The builders are delivering a great product for the price! Showing activity is inching up slowly but it is going in the right direction. The general mood is that Loveland is poised to make a great recovery by the end of 2011. If you are a buyer looking for a bargain, now is the time to be shopping!

If you’re in the market to sell your home, you probably feel you can’t catch a break. Nearly five years into the housing bust, when many experts thought the real estate market would at least have stabilized, sales and prices are still dropping in most of the country.

In February existing-home sales tumbled 9.6% from the previous month, and the median price of a single-family home dropped to $157,000 from $163,900 the previous year, according to the National Association of Realtors. (Latest home prices)

You can’t count on things turning around soon, either. At the current sales pace, it would take 8.6 months to clear out the 3.5 million existing homes listed today.

With the boost from the recent homebuyer tax credit gone, anyone who decides or is forced to put a house up for sale enters a market where houses often linger a full six months — even a year — without any bites.

Put part of the blame on stiff competition: Foreclosures and short sales, which accounted for 39% of sales in February, sell for about 15% less than conventional homes.

“It’s dreadful out there for sellers,” says Patrick Newport, a U.S. economist at forecasting firm IHS Global Insight.

Fortunately, there is one glimmer of good news. Bargain hunters, too, know that home prices are down some 32% from their peak. In a recent CNNMoney survey, three-quarters said that it was a good time to buy a home. But translating that interest into an actual sale can require some extreme measures.

It’s not enough to show buyers your house is a deal: You have to convince them it’s a total steal. That means slashing your price, bringing in a pro to pretty it up, and creating a killer website for your home. Here’s how to do it right.

Slash Your Price, Bigtime. Sellers still loath to accept the extent of the toll the bust took on their homes’ value, says Tara-Nicholle Nelson, consumer educator for the housing website Trulia.com. Many also give in to the temptation to list the property above fair market value to see what happens. Big mistake. About a quarter of sellers in the past year initially listed too high and were forced to knock the price lower, according to Trulia.com. Even in cities that have held up well, such as Charlotte, 25% of sellers resort to at least one price cut, and often two.

“The first 30 days on the market are the most important,” says Norwalk, Conn., realtor Elizabeth Kamar. That’s when your place attracts the most attention and gets the most showings. The result: You often end up with less than you would have if you priced it right to begin with, says Kamar. So get aggressive right out of the gate.

Undercut your competition. In normal times listings of similar properties in your area would give you a good sense of what your home might sell for. Today there’s a big gap between what sellers want and what buyers are willing to pay.

Instead, figure out what you can realistically expect to get by asking your realtor to show you what houses similar to yours have sold for in the past three to six months. If more than a couple of the comparable properties were foreclosures or short sales, look closely at the photos and descriptions of those former listings. Distressed homes should be included in your comps if they are in move-in condition, says Las Vegas realtor Paul Bell.

Once you have a handle on your likely sale price, list your home a bit beneath that, says Rockaway, N.J., agent Ellen Klein. You don’t have to undercut by much to attract attention, because that price will probably still be about 10% or 15% below what other homes are listed for. Even if you’re competing with lots of foreclosures and short sales, your price should generate enough interest to attract more than one bidder, pushing up the final price to where it should be.

When Dorchester, Mass., realtor Julie Simmons wanted to sell her own home in January, she listed it at $460,000, about $5,000 to $10,000 below what she thought she’d sell for.

“I knew I had to attract attention,” she says. Even in a harsh winter, she received four offers in less than two weeks — and sold for $465,000.

Take out the ax. No bites within 30 days? Make a big move.

“When a property sits, people start thinking it must be listed too high,” says Klein. To stimulate interest, make a giant cut — as much as 10% of the asking price, and even more in an area where prices are still falling. That should be enough to warrant a second look from buyers who passed the first time, and to bring in a new pool of potentials who are hunting in the lower price range.

Last year Montclair, N.J., empty nesters Peter and Lauren Meyer decided to downsize from their seven-bedroom home to an apartment in the same town. They put their home on the market for $1.1 million, more than their realtor suggested. Six months and four price cuts later they pulled it off the market at $889,000.

“At that point we wrestled with lowering the price further, but we were ready to move on,” says Peter. The couple relisted their home for $799,000 and it sold for $808,000.

Play hardball. It’s okay to reject low-ball offers if a buyer won’t budge. But if a buyer is willing to negotiate, push aside feelings of anger or insult and start counteroffering, says Mabel Guzman, president of the Chicago Association of Realtors.

Ideally you’ll be able to negotiate within $10,000 to $20,000 of an acceptable offer. Then, “using incentives as carrots and sticks can make it easier to reach an agreement,” says Guzman. For example, if your buyer refuses to dicker, you might offer to leave behind the appliances. Or maybe you’d rather take the reduced price but have the buyer agree that you take 60 days, not 30, to move out.

Hire a Stager. There are people who want to sell, and there are people who have to sell. Kathy and Rex Roberts are among the latter. Based in West Hartford, Conn., the couple, who have two children, have been living in different cities since early December, when Rex, an IT auditor, started a new job in Silver Spring, Md., after a layoff.

Listed that same month, their solidly built three-bedroom 1956 colonial has had no offers, despite two price cuts (it’s currently at $389,500). Between rent on Rex’s new place and their carrying costs on the house, they’re paying a budget-straining $4,000 a month. “We need to sell,” says Rex, “but we’re not willing to drop the price again.”

So in March they tried something new: professional home staging. Staging, increasingly popular with homeowners trying to sell mid-range houses, can extend from simply rearranging existing furniture to repainting, replacing fixtures, and bringing in new furnishings. The goal: to highlight the house’s best features while making it as easy as possible for buyers to imagine themselves living there. Veteran real estate brokers interviewed by MONEY say that proper staging can speed the sale and often increase the price too. The key is to get it done right.

Start with an open mind. Staging demands a psychological shift that many homeowners find challenging: thinking of your house not as your home but as a set. That means scrubbing away evidence that you actually live there. Your goal: the homey yet impersonal look of a Pottery Barn catalogue.

Find the right stager. The ASP (accredited staging professional) designation is a plus — it indicates the stager has gone through some basic training — but it isn’t essential. Get names from realtors or at realestatestagingassociation.com, then review the stager’s online portfolio of before-and-after photos. Next, call homeowner references and ask how fast their homes sold after staging and whether they think the work helped.

Establish a budget and ask the stager to work within it. Stagers typically charge $150 to $400 to walk through your home and give recommendations for each room. You can then execute the plan yourself or hire the stager to do it for an hourly fee, usually $100 or so, plus the cost of any new paint or furnishings.

If you make big changes, costs can add up — but “I can often make a huge difference using what homeowners already have,” says Mary D. Brooks, a stager and realtor from Breckenridge, Colo.

See whether your realtor will pay. If you’re on the hook for a full 6% commission, you have significant negotiating power. “I’m happy to pay for staging because I know it works,” says realtor Paul Aspelin of Victoria, Minn.

As for the Robertses, after getting advice from stager Kara Woods, owner of Stage to Move in Danbury, Conn., they painted their lavender dining room a soft gray and removed excess furniture, among other things; a professional stylist redid the living room (see above). “It’s incredible how much bigger and more modern it looks,” says Kathy.

Find the Right Hook. These days it’s going to take far more than a FOR SALE sign in the front yard and a spot on the multiple-listing service to get potential buyers in the door. That means getting the word out in a creative fashion — and finding a realtor who is willing to do the same.

“The more eyeballs that get on the listing, the better,” says Katie Curnutte of the real estate information website Zillow.com. To do that, you need a multipronged marketing plan of attack.

Create a great site. About 90% of buyers begin their search on the Internet, according to the National Association of Realtors. Make sure your home’s online presence has a dozen or two photos: Having 20 instead of five photos will almost double the number of hits you’ll get, according to Zillow.com. See the sidebar at right for more ways to keep potential buyers clicking on your site.

Throw money at them. Incentives can perk buyers’ interest just as much as price cuts, says Matt Brown, director of business development at ForSaleByOwner.com. In fact, many buyers will agree to a higher price if their upfront costs are lowered, since they often run short on cash.

If you can afford it, offer to cover the buyer’s closing costs or pay the first year’s property taxes or condo or homeowner association dues. However, those freebies may be practically standard, particularly in areas rife with distressed properties.

In that case, says realtor Guzman, you might be able to bring buyers to the door by tossing in an unusual bonus, such as a $1,000 gift card (throw in one for the buyer’s agent as well); a belonging they mentioned loving, such as the pool table or plasma TV; or a $5,000 credit to use in the home as they wish. (You can even pay upfront points so that they can get a lower mortgage rate, if you can swing it.)

Be aware, though, that you must disclose any such gifts or payments when the offer is agreed on, and some lenders will not approve them. If so, you might have to find another incentive that the bank doesn’t object to.

Showcase super condition. Yes, some buyers are hunting for foreclosures in rough shape that they can nab for a song. Yet just as many shoppers don’t want — or don’t know how — to put in that sweat equity. So hire an inspector to identify every problem with the home, even seemingly minor issues such as dripping faucets, and fix them.

“If an outlet doesn’t work, why get the buyer wondering what else is broken?” asks Beth Foley, an associate broker in Holland, Mich. Tell your realtor to give anyone who tours your home a copy of the inspection report and your list of fixes.

Spread the word online. Having your home listed on a major website like Realtor.com isn’t enough. Ask your realtor if you’ll get an “enhanced” listing on the site, where your home gets top promotional billing. Many realtors will create a website just for your home. You also want to get your listing on alternative sites like Craigslist or even Facebook.

In 2009, when Karen Mauro put her small, historic two-bedroom Orange County, Calif., home on the market she thought it would be a tough sale. Realtor Lisa Blanc listed the property at $467,500 and spread the word not only through the MLS listing but also with an update on her Facebook page. A Facebook friend of Blanc’s passed the info to someone she knew was looking for that kind of house. Within a week, Mauro had an offer for $460,000.

Stay away — far away. In better times you may not feel obliged to drop everything to accommodate prospective buyers’ schedules. Today, if buyers can’t get in on their time, they’ll skip it, says Summer Greene, who manages realtors in the Fort Lauderdale area. So be prepared to show a perfectly clean home at a moment’s notice. And disappear (along with your dog, if possible) for all showings and open houses so that prospects can imagine themselves in your house — an impossible task when your family is vegging on the couch.

When Betty McCoy began showing her Prairie Village, Kans., three-bedroom Cape Cod – style house, for example, she kept a list of must-do chores — including emptying wastebaskets, filling the dishwasher, making the bed and walked out every morning with the place spotless. On the weekend she holed up at a local mall.

“Every time I thought I could go home, a new person wanted to see the house,” recalls McCoy. But a few extra hours at the mall paid off in spades. In just a few days McCoy had an offer for her home — for the full listing price.

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